AEFIN THURSDAY, 11 APRIL 2019
TL;DR
Discover three compelling reasons Australian business owners should consider commercial property loans now, including NAB survey insights and growth funding strategies.
There’s no better time than the present to SCALE (expand) your business. The past few months have seen business conditions rise above the long-run average, according to NAB’s March 2019 monthly business report.
Successfully growing your company is all about knowing when to take action. While factors such as improved conditions and better payment times are positive across the board, business owners in Australia should seize the opportunity to expand their companies.
Let’s look at the current business outlook in Australia.
Payment times are quickening
Following the inquiry launched by the Australian Small Business and Family Enterprise Ombudsman in April 2017, payment times have been improving throughout the country.
The latest analysis of late payments by illion (formerly Dun & Bradstreet) found that Australian businesses are paying overdue bills in the fastest time on record. The average time taken for Australian businesses to settle a late payment are at a historic low of 10.4 days, down 17.7 per cent on the prior corresponding quarter. This significant drop has meant that late payment times are currently at the lowest they have been in six years.
It is interesting to note that late payment times is highest in the consumer sensitive retail and utilities sectors at 13.5 days whereas late payment times for mining have fallen sharply over the past year. The largest businesses (500+ Employees) remain well behind Australia’s smaller entities at 14.6 days to 8 days (6.7 day differential).
With better odds of timely repayment, business owners can apply for commercial loans with the confidence that they have the cash flow to meet debt obligations.
Business conditions are improving
Business conditions rose by 3pts to +7 index points in March, driven by increases in each of the index components. Profitability (now +5) and trading (+12) are now just above average, while the employment index (+7) is well above average.
Across industries the best conditions are in mining and the services sector – recreation & personal, and finance, business and property services. While retail saw some improvement in the month, the goods distribution industries, including wholesale and retail remain weakest With enhanced trading conditions, booming sectors should waste no time in securing the finance to grow.
Confidence is down from 2018 but..
Against this, business confidence (the expectation for conditions going forward) weakened further in the month and continued the below average run. According to the NAB Monthly business survey for March 2019, confidence fell 2pts in the month to 0 index points, continuing its below average run.
Although down from 2018, Morgan’s monthly business confidence rating , rose to rating of 106.7 in March 2019, with 50 per cent of business owners expecting their companies to be financially better off within the next year.
Speak to us!
With so much to be optimistic about, it’s no surprise that the shrewdest of business owners would choose now to start growing. Get in touch with our team to find the right finance solution for your expansion today.
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Frequently Asked Questions
What is the key takeaway from “3 Reasons Why Now May Be the Time to Consider a Commercial Loan”?
Discover three compelling reasons Australian business owners should consider commercial property loans now, including NAB survey insights and growth funding strategies.
How does this affect SMSF property investors?
Successfully growing your company is all about knowing when to take action. While factors such as improved conditions and better payment times are positive across the board, business owners in Australia should seize the opportunity to expand their companies.
Related: SMSF Loans Perth | SMSF Property Investment | Top 7 SMSF Lenders 2026 | Perth Growth Corridors
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